The proven benefits of operating a project management office (PMO) has spurred an increasingly larger pool of companies into creating and establishing their own PMOs. But as the PMO matures, so too has the field's understanding of the methods required to effectively operate a PMO. This article discusses how organizations and project managers should develop their PMOs. In doing so, it describes the key factor that usually determines if an organization will invest in a PMO; it identifies the process that the city of Arlington, TX (USA) used to launch and define the priorities of its IT-related PMO. It outlines four key steps that can help organizations develop and launch PMOs that appropriately match their organizational structure and operational capabilities. Accompanying this article are two sidebars: The first overviews why and how Australian investment and development group Stockland launched a PMO; the second chronicles the recent demise of the PMO at Blue Cross Blue Shield of Michigan.